Ecommerce Inventory and Labor Challenges With Steve Syverson From NFI eCom

Having worked in the logistics industry for 22 years, with 10 of those focused on ecommerce, Steve Syverson has had countless opportunities to hear from small business owners about the challenges and uncertainties they face. In this episode of Unboxing Logistics, he answers some of their most common (and pressing) questions.

Should you use staffing agencies during busy times? How can you choose the right warehouse technology? When does using a 3PL make sense? Listen to learn the answers!

How to boost staff morale during peak season

Peak season can be incredibly stressful for business owners and employees alike. The key to smooth sailing, Steve says, is finding ways to ease the load on staff. That could involve anything from pizza parties to flexible work schedules to bringing in temporary workers.

“Don't layer more stress on your teammates—they're already stressed. Your job as an owner of a brand or a business is to … figure out ways to mitigate some of that stress. Because at the end of the day, you want them to perform at their highest level.”

Common SMB inventory management challenges

Steve describes one pitfall ecommerce businesses often fall into: “What I see with SMBs typically is they tend to overbuy or overestimate demand. [This] puts them in a really tough position from an inventory perspective.” 

While overstocking leads to inefficiencies in the warehouse, Steve points out the bright side: it doesn’t necessarily affect customers. Stockouts, on the other hand, can destroy the purchase experience and cause you to lose customers.

The solution? Use technology to forecast demand accurately and gain visibility into stock levels. “Without those insights, without the technology platform … you're setting yourself up for failure because you're just not going to know what you have.”

Pros and cons of working with a 3PL

In Steve’s experience, the biggest hurdle brands face when deciding whether or not to work with a 3PL is the “perceived loss of control.” However, once they make the leap, “they never look back, because now it's given them the ability to scale their business. They're focused on going to shows, to conferences, building strategic partnerships, working with new vendors, finding new manufacturers … and marketing their brand.”

Links

• Connect with Steve on LinkedIn: https://www.linkedin.com/in/stevesyverson/ 
• Visit NFI eCom’s website: https://ecommerce.nfiindustries.com/